Prepaid orders usually settle within a few days through the gateway. Cash-on-delivery orders settle through the courier’s remittance cycle, which is often a week or more after delivery.
Shorter cycles improve working capital, which matters as much as margin for a growing brand buying stock ahead of demand.
Related terms
- COD remittanceCOD remittance is the transfer of cash collected on delivery from the courier or…
- Payment gateway fee (MDR)A payment gateway fee is the percentage a gateway such as Razorpay, Cashfree or…
- Cash on delivery (COD)Cash on delivery is a payment method where the customer pays the courier in cash…
Part of the growth marketing glossary by Shiva Sharma.